The Banking Legislation.

Feilding Star, Volume XVIII, Issue 14, 16 July 1896, Page 2

The Banking Legislation.

(Per Press Association) Wellington, July 15. The Bank Committee of the House resumed this morning. Th-^ chairman j stated the Committee of the Legisla- ; tive Council had passed a resolution I agreeing to join the Committee of ihe ' House if the order of reference was , made the same in all respects as that j of the committee of the Legislative i Council ; also, that counsel and press representatives be excluded. Mr Seddon moved that this committee proceed with the enquiry, and that a letter be sent to the committee of Legislative Council intimating that the House committee does not deem it advisable to apply to the House for an amended order of reference. This was carried unanimously. Ou the motion of Mr Seddon, it was decided that the persons and corporations named in the order of reference or otherwise interested in the enquiry may if they so wish be represented by counsel, but that counsel be not allowed to address the committee. Mr Seddon moved that relevant questions suggested by counsel shall be put through the chairman. Mr Guinnes.« opposed the motion, and said it would cause waste of time and interfere with the directness of the examination. The motion was carried by 6 to 3. It was decided that notice bt; sent to the corporations or persons mentioned in the order of reference of these decisions, and that the Chairman bring down an interim report to the House this afternoon embodying the resolutions arrived at by the House Committee and Legislative Council. The report of the subcommittee which framed the issues was adopted with amendments, and copies were ordered to be sent to the parties mentioned in the order of reference. Mr Hutchison moved that the three liquidators of the Colonial Bank be summoned to attend the committee and produce papers, documents, etc., in their possession dealing with the J. G. Ward Association. Mr Seddon opposed the motion as being premature and an attack on the Ward Company. Mr Guinness said the committee could not enquire into Ward's business as it was not included in the order of reference. Mr Maslin thought the Ward question must be inevitably gone into. Mr Seddon said the Ward business could be taken in its turn as it came up. After considerable discussion Mr Hutchison withdrew his motion and gave notice of it for next day. On the motion of the Premier, it was decided that the President of the Bank of New Zealand be asked to attend to-morrow, and bring with him all necessary documents. Mr Hutchison gave notice to move, That the Committee appoint two accountants to examine and report upon the several balance-sheets of the Ward Farmers' Association, and the dealings of Ward with the Colonial Bank, and prepare a balance-sheet of the Association up to 30th June, 1896. Mr Seddon : It is quite clear what you are driving at. Mr Hutchison : I want to get at the truth. At 1.40 p.m. the Committee adjourned till 11 to-morrow. Later. At the Banking Commitee of the House to-day, Mr Geo. Hutchison gave ' notice to move that Mr J. G. Ward, Managing Director of the Ward Farmers' Association, do attend and give evidence amd produce: (1) Copies of the Articles of Association, and memorandum of the incorporation of the association ; (2) the original share registry of the association and all applicatious for allotment and transfer of shares ; (3) the original balance-sheets and directors' reports of the Association up to 30th June, 1896 ; (5) all the original books of account, letter books, original letters, telegrams (as received), and all other documents, papers, and writings, relating to the affairs of the association, including originals of all bills of exchange, promissory notes, drafts, and cheques retired or returned ; (5) copy of Articles of Association and memorandum of incorporation of Ocean Beach Refrigerating Company, and all books and records of such company ; (6) copies of Income Tax returns made by the Company in 1893 and 1894 ; that the following witnesses be summoned : — John Murray, Sydney Bush, Manager of the Bank of New Zealand, Timaru ; B. A. Chisholm, Manager of Bank of New Zealand, Invercargill ; John Fisher, ex-Manager of Ward Farmers' Association ; Walter Johnsston and William Booth, Directors of the Bank of New Zealand, Wellington ; Hon. Geo. McLean, M.L C, Captain Colbeck and W. S. Wilson, Auckland. This Day. The Banking Committee resumed this morning. The chairman read a letter from Victor Braund, offering his services to the committee, at a banking expert, without remuneration. Ordered to lie on the talbe. Nearly an hour was spent in discussing the procedure. In regard to the notices of motion handed in by Mr Hutchison yesterday, Mr Seddon considered Mr Hutchison had taken an unprecedented course, and it should be quite sufficient for a member who wanted certain documents or evidence to hand in slips to that effect to the chairman. Mr Hutchison's notices of motion were referred to a sub-committee. The examination of Mr Watson, President of the Bank of New Zealand, was then proceeded with. After he had answered a few questions regarding their position and officers of the Bank of New Zealand in 1888 Mr Seddon asked who were the persons whose names appear in connection with the accounts written off? Mr Hutchison submitted the question war outside the order of reference. The chairman ruled the question was in order. Mr Watson, having regard to the declaration of secrecy and the terms of bis appointment, declined any information as to the accounts, and was legally advised to that effect. The chairman, "Do you decliae to answer the question ?" Mr Watson: "I sign a declaration, and all banks officers and everyone connected with the bank signed a declaration that they will not disclose anything relating to individual accounts. I have been appointed to conserve the interests of the colony and the shareholders, and contend it would be against the interests of the colony and share, hoiders to divulge any information, and that it is my duty not to divulge it." The chairman (to witness) : " You never took any oath ?" Watson : " No,

I signed a declaration of secrecy." Mr Hutchison: "A declaration would not be an excuse in any Court for refusing to answer a question. This committee has the full powers of the Supreme Court, and House has all the powers of the House of Commons. Mr Montgomery : "Mr Watson made a declaration to the bank, but about 10 minutes ago he took an oath before this committee to tell the truth, the whole truth, and nothing but the truth. Mr Tbeo. Cooper, who appeared on behalf of the Bank of New Zealand, said : " I have advised the President, directors, and officers, to refuse to give information concerning the accounts of past or present customers of the Bank of New Zealand or concerning accounts of the Colonial Bank. Mr Seddon : " The question is whether the Bank shall be master of the House of Representatives. I see nothing for it but to consider our position." The Chairman : " I was going to say we should take the opinion of the House." Mr Hutchison : " I take it the chairman's ruling must be upheld and the question must be answered." The Banking Committee will report to the House to-morrow with regard to Mr Watson's refusal to answer certain questions. __